AvePoint, Inc. (NASDAQ:AVPT) Could Be Less Than A Year Away From Profitability

AvePoint, Inc. (NASDAQ:AVPT) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. AvePoint, Inc. provides cloud-native data management software platform in North America, Europe, the Middle East, Africa, and the Asia Pacific. The US$2.7b market-cap company announced a latest loss of US$29m on 31 December 2024 for its most recent financial year result. The most pressing concern for investors is AvePoint's path to profitability – when will it breakeven? In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.

View our latest analysis for AvePoint

Consensus from 7 of the American Software analysts is that AvePoint is on the verge of breakeven. They expect the company to post a final loss in 2024, before turning a profit of US$4.6m in 2025. So, the company is predicted to breakeven approximately a year from now or less! At what rate will the company have to grow in order to realise the consensus estimates forecasting breakeven in under 12 months? Using a line of best fit, we calculated an average annual growth rate of 96%, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.

Given this is a high-level overview, we won’t go into details of AvePoint's upcoming projects, however, bear in mind that typically a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

Before we wrap up, there’s one aspect worth mentioning. AvePoint currently has no debt on its balance sheet, which is rare for a loss-making growth company, which usually has a high level of debt relative to its equity. This means that the company has been operating purely on its equity investment and has no debt burden. This aspect reduces the risk around investing in the loss-making company.

Next Steps:

This article is not intended to be a comprehensive analysis on AvePoint, so if you are interested in understanding the company at a deeper level, take a look at AvePoint's company page on Simply Wall St. We've also compiled a list of key factors you should further examine:

1. Valuation: What is AvePoint worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether AvePoint is currently mispriced by the market.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on AvePoint’s board and the CEO’s background.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.